Application for Grant funding from the Community Housing Fund

Decisions:

(Cabinet Member with Special Responsibility Councillor
Warriner)

Cabinet received a report from
the Director of Economic Growth and Regeneration, to approve a
grant application to fund the pre-development costs to support a
community led development being brought forward by Halton Senior Co-Housing Group Ltd.

The options, options analysis,
including risk assessment and officer preferred option, were set
out in the report as follows:

Option 1:Approve the
grant funding

Option 2:Do not
approve the grant funding

Advantages

The grant will enable the community group to advance their
proposals and get to a point where they have a deliverable
scheme. The principle of a scheme of
this type being supported has already been established through
pre-application advice which was positive.

The group have already been directly involved in the original
Co-Housing Scheme and have the skills and experience to bring this
project to fruition.

It will increase the housing options for older people providing
a full range of tenures and help balance housing
markets.

It will encourage other community groups to take projects
forward.

The units will achieve Passivhaus
standards.

The council can demonstrate to MHCLG/Homes England the funding
has been used for the purpose it was intended.

The funding could be used to support other projects.

Disadvantages

The funding could be spent on other projects.

It will not deliver a community led scheme or any of the
associated benefits.

If the group were to seek funding through Homes England, their
bid may be unsuccessful at a point where the council has
unallocated Community Housing Fund reserves.

The outstanding matters outlined in Appendix 1 will remain
unresolved

Risks

There is always uncertainty with any development that it will be
viable, deliverable and will obtain planning permission which could
result in abortive costs. However,
pre-application planning advice has been positive. The group will be required to enter into an
option agreement on the land before any grant is paid, this should
be minimised. The grant payments will
also be made in phased payments, again to reduce the risk of
abortive costs being incurred.

Loss of opportunity

Other than the grant payment, there are no further risks upon
the council.

Reputational damage

The officer
preferred option is Option 1.

Whilst
recognising the level of grant required to fund the pre-development
costs is considerable, in construction
terms this represents a small proportion of the overall scheme
costs.Halton Senior Co-Housing Limited is already
positioning itself to take this scheme forward, and has obtained an
in principle approval for the necessary development finance to fund
the project.

Councillor Warriner proposed, seconded by
Councillor Hughes:-

“That recommendations (1) and (2), as
set out in the report, be approved with the following revision to
recommendation (3):

·That the Section 151 Officer be
authorised to update the General Fund Revenue Budget to reflect any
decision taken under recommendation 1 to be funded from the Revenue
Grants Unapplied, and subject to the Section 151 Officer being
satisfied on appropriate grant conditions being provided or agreed
and there being a nil impact, (and no clawback) on the
Council’s resources and full recovery of any extant
sums.”

Councillors then voted:-

Resolved unanimously:

(1)That up to £160,000 grant towards the
pre-development costs of a new community led development (as
detailed in exempt Appendix 1 to the report) be set aside from the
Community Housing Fund.

(2)That, subject to requirements from Lancashire County
Council Highways Authority, Cabinet authorise officers to bid for
Homes England – Community Housing Fund Phase 1 Infrastructure
costs (as detailed in exempt Appendix 1 to the report) should this
be required.

(3)That the Section 151
Officer be authorised to update the General Fund Revenue Budget to
reflect any decision taken under recommendation 1 to be funded from
the Revenue Grants Unapplied, and subject to the Section 151
Officer being satisfied onappropriate grant conditions being provided or agreed and there
being a nil impact, (and no clawback) on the Council’s
resources and full recovery of any extant
sums.

Officers responsible for effecting the decision:

Director of Economic Growth and
Regeneration

Director of Corporate
Services

Reasons for making the decision:

The proposal
seeks to provide an exemplar residential development. This will offer a number of added values and
benefits and positively contribute to delivery of the
council’s Housing Strategy by providing 20 new homes suitable
to meet the needs of older people, which will be of high quality
and design and will also increase the provision of affordable
housing in the local area. The decision
is consistent with the Corporate Plan and links directly with
improving the quality and availability of housing.